We get revved up whenever we hear any news about Tesla Motors[2], and the latest just sets the maker of electric-powered roadsters into an all new green vehicle fast lane. Tesla Motors[3] just announced plans to start building the Model S – an electric sedan with a 225-mile range – in the Bay Area with plans to get the five passenger vehicles on the road in two years time!

The much anticipated announcement was given yesterday at Tesla’s San Carlos, California facility where Tesla addressed the press alongside California Governator Arnold Schwarzenegger, who has a $100,000 Tesla Roadster on order[4]. The plans to build the Model S in California came about by some sweet incentives from the state to keep the car maker’s manufacturing from moving to New Mexico.

By choosing California as the home base for Model S, Tesla will save millions of dollars through the newly minted CAEATFA program[5] which offers certain tax exemptions on manufacturing equipment for electric vehicles. The company would also qualify for state grants and special employee training programs.

The Model S is still a bit of a mystery in terms of design and specs, but the car maker teased details that the sedan will get 225 miles per charge, cost around $60,000 and be in production late 2010.